Bitzio, Inc. (fka BTZO)

[Arthur]

$2,500,000 cash???? That's good money

Nope, that's putrid money.

Since BTZO is broke, it had to borrow that money at horrific financial conditions:

BTZO borrowed $2,900,000 (way more than its own market cap) from TCA Global, at
-11% interest
-convertible into BTZO shares at a 15% discount
-with a $3,200,000 "advisory fee" (that's more than 100% interest)
-the advisory fee is paid in Series E Preferred
-half of the advisory fee may be waived if certain conditions are met.
-a 4% "transaction fee"
-a $15,000 "due diligence fee"


So, BTZO "bought" a money-losing company heavily in debt with money it didn't have.
Of course, BTZO also gave away 80% of its equity, so, in a sense your shares lost 80% of their "value".

I don't expect the new owner has any interest whatsoever in clothing lines and dance wear.
K. K. is mostly into high (and low) finance, always at the expense of shareholders.